On the proposed RR that was posted at the BIR website, taxpayers are given two years from the effectivity of the finalized RR to file the Estate Tax Amnesty Return (ETAR) or BIR Form No. 2118-EA in triplicate copies at the Revenue District Office (RDO) having the jurisdiction over the last residence of the decedent.
If the decedent has no legal residence in the Philippines, the return shall be filed with RDO 039 – South Quezon City. The estate tax amnesty shall cover the estate of the decedent/s who died on or before December 31, 2017.
An estate tax amnesty rate of 6 percent with a minimum tax amnesty amount of PHP5,000 shall be imposed on each decedent’s total net taxable estate at the time of death without penalties at every stage of transfer of property.
However, the Estate Tax Amnesty shall not extend to the following:
a) Delinquent estate tax liabilities which have become final and executory, in which case the Tax Amnesty on Delinquencies may be applied; and b) Properties involved in cases pending in appropriate courts.
The estate shall be valued at its fair market value (FMV) as of the time of death. However, the value of the real property as of the time of death shall be whichever is higher of the zonal values as determined by the Commissioner or, the FMV as shown in the schedule of values fixed by the Provincial or City Assessors.
It is expected that the final estate tax regulation will be issued within this month. Further, comments, inquiries and clarifications may be coursed thru the dedicated email address <[email protected]> which will be answered by the concerned group of the Tax Amnesty Committee.